Mortgage help on Shared Ownership property.

kells1232002

Hello

This is my first time posting and would like some advice please.

I have an interview on Thursday with a local Housing association group to discuss a brand new shared ownership property they have available.

I have had a meeting with Halifax and Abbey to enquire about the different mortgages they have availble for first time buyers purchasing a shared ownership.

I am just a little concerned in obtaining a mortgage. The property is a two bedroom flat and valued at £127500. I am looking to purchase 25% which is £31875. I have a 20% deposit for this share.

My query is more conerning my debt. I currently have a loan with Abbey for my car, which I pay £359 a month and have another 19 months to go. I have never missed a payment on this loan.

I also have a credit card with Abbey with has a limit of £1000 on and is pretty much maxed out. I previously paid this off in April in full but then started spending on it again and have been paying minimum payment ever since without missing a payment.

I also have an overdraft of £2000 on my Abbey account which gets maxed out every month. (My take home salary is £1500 a month). I have gone over this once in the last year.

I am due to come into £1000 shortly which is money owed to me and wondering whether I should pay off my credit card and cancel it or pay off £1000 off my overdraft.

Please can anyone tell me which option is best and which credit is more likely to effect my mortgage application.

I know some peoples feeling on shared ownership but I have done my reasearch and feel it is the best option for me.

Many thanks for your advice.

kells1232002

Can anyone help with this....

Thanks

robin_banks

What type of property is it?

kells1232002

A two bedroom flat.

K_and_N

Hi, I had a small credit card balance when I applied for my mortgage and my financial adviser told me to pay this first. But I had no overdtaft at that time so it's not really helpful to your question. I think the best thing is talk to Halifax and Abbey first and get their advice first. Do you feel you can save again quickly if you use part of your deposit to pay off the overdraft and £1000 towards credti card?

robin_banks

New build?, the reason I ask is many lenders don't go near builds, ot if the building has over 5 storeys.

Halifax, Nationwide, Abbey Leeds BS, Kent Reliance BS and Ipswich BS all lend on shared ownership.

kells1232002

Thanks for the reply. I dont think I can save that quickly. The property I have in mind is already built and waiting and the second choice property is going to be ready in November. Both sites have had a lot of interest and I dont want to blow my chance by losing my deposit.

AMILLIONDOLLARS

On the basis you have described above, it looks on paper that you cannot afford to proceed with the purchase. If you are maxing out your overdraft every month and just pay the minimum on your credit cards. That said, the truth is, in order to put yourself on a good footing, to be considered for any mortgage at the moment, you will need to use your deposit to pay off both the credit card and overdraft debts. Then live within your means for at least 6 months before the Housing Association or any organisation will consider you for a mortgage/this commitment.

My daughter is about to complete on her HA shared ownership and believe me, the appointed FA goes through your finances with a fine tooth comb before you are considered. My daughter cut out all the luxuries/going out etc, she was that determined to be considered. I suggest you do the same.

Good luck

AMD

kells1232002

Yes it is New build. I have spoke to Halifax and Abbey. I have ready a few people on here seem to have a lot of success with Leeds.

robin_banks

It will be overpriced, as many newbuild shared ownership properties are.

Which RSL/HA is it ?

kells1232002

Atlantic Housing/First Wessex